Finding 620904 (2022-001)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-09-29
Audit: 50760
Organization: Hopesource (WA)
Auditor: Clark Nuber P S

AI Summary

  • Core Issue: HopeSource failed to report required subaward data in the FSRS, violating federal compliance requirements.
  • Impacted Requirements: Non-compliance with the Federal Funding Accountability and Transparency Act (Transparency Act) and 2 CFR Part 170 regarding subawards over $30,000.
  • Recommended Follow-Up: Implement stronger internal controls to ensure timely and accurate reporting in the FSRS.

Finding Text

Finding 2022-001 Significant deficiency in internal control over compliance related to reporting. Federal Agency: U.S. Department of Veterans Affairs Program Title: VA Supportive Services for Veteran Families Program Assistance Listing Number: 64.033 Project Number: 20-WA-338-22 Award Period: October 1, 2021 - March 31, 2023 Federal Agency: U.S. Department of Veterans Affairs Program Title: VA Supportive Services for Veteran Families Program Assistance Listing Number: 64.033 Project Number: 20-WA-338-C2 Award Period: October 1, 2020 - June 30, 2022 Criteria Under the requirements of the Federal Funding Accountability and Transparency Act (Pub. L. No. 109-282) (Transparency Act) that are codified in 2 Code of Federal Regulations (CFR) Part 170, recipients (i.e., direct recipients) of grants or cooperative agreements who make first tier subawards of $30,000 or more are required to register the covered subawards in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) and report the required subaward data no later than the last day of the month following the month the subaward was made. Condition/Context for Evaluation During the year ended December 31, 2022, HopeSource lacked a process to report required subaward data in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) and report subaward data through FSRS for those subrecipients receiving over $30,000. Transactions Tested Subaward Not Reported Report Not Timely Subaward Amount Incorrect Subaward Missing Key Elements 1 1 1 N/A 1 Dollar Amount of Transactions Tested Subaward Not Reported Report Not Timely Subaward Amount Incorrect Subaward Missing Key Elements $786,000 $786,000 $786,000 N/A $786,000 Effect or Potential Effect HopeSource did not comply with the subaward reporting requirements as specified in 2 CFR 170. Questioned Costs Not applicable. Cause Internal controls were not designed adequately to ensure required reporting in FSRS was made. Repeat Finding No Recommendation We recommend that HopeSource implement the necessary internal controls to ensure required reporting is made in the FSRS. Views of Responsible Officials Management agrees that the required FSRS report was not made. After the issue was raised as part of the Single Audit, management took measures to enter the requires subawards.

Categories

Subrecipient Monitoring Reporting Significant Deficiency

Other Findings in this Audit

  • 44459 2022-001
    Significant Deficiency
  • 44460 2022-001
    Significant Deficiency
  • 44461 2022-001
    Significant Deficiency
  • 44462 2022-001
    Significant Deficiency
  • 620901 2022-001
    Significant Deficiency
  • 620902 2022-001
    Significant Deficiency
  • 620903 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
64.033 Va Supportive Services for Veteran Families Program $846,834
21.027 Coronavirus State and Local Fiscal Recovery Funds $778,410
20.509 Formula Grants for Rural Areas and Tribal Transit Program $391,451
14.231 Emergency Solutions Grant Program $226,843
16.812 Second Chance Act Reentry Initiative $223,592
81.042 Weatherization Assistance for Low-Income Persons $106,456
14.267 Continuum of Care Program $98,962
93.569 Community Services Block Grant $74,285
10.569 Emergency Food Assistance Program (food Commodities) $60,366
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $45,782
10.433 Rural Housing Preservation Grants $42,449
93.568 Low-Income Home Energy Assistance $31,865
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $26,594
81.U01 Bpa Weatherization $25,857